Uber, the US-based ride-hailing company that operates in eight African countries, is winding down its operations in Nigeria, ending a twelve-year presence in one of its earliest markets.

"We are writing to share some difficult news," Uber said in an email to customers on Wednesday. "After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria, effective 2 September 2026."

Uber launched in Nigeria in 2014 and helped build the country's ride-hailing market. Its departure comes as intensifying competition, rising operating costs, and growing regulatory pressure have made the market harder to navigate. Nigeria's macroeconomic pressures, including the naira's sharp depreciation and fuel subsidy removal in 2023, have driven up costs for both drivers and platform operators, squeezing margins in a market where fares must stay affordable for most riders.

In an email to drivers on the app, the company said: "We know this is heavy news, and we want to express our deepest gratitude to you for being part of our journey in Nigeria." Uber said it will provide a one-off "goodwill payment" to drivers "to help ease this change." Thousands of Nigerian drivers who relied on the platform will now have to migrate to rival apps or leave ride-hailing altogether.

The exit leaves the Nigerian market more concentrated around Uber's biggest rivals, Bolt and inDrive, while opening the door to a handful of local operators such as Lagride, a ride-hailing service backed by the Lagos State Government, and Rida. The economics of ride-hailing in the country remain difficult, however, with high fuel and vehicle maintenance costs, pressure to keep fares affordable, and the constant need to attract and retain drivers. How Bolt and inDrive respond—whether they seize the vacated market share or struggle with the same unit economics—will shape the next phase of Nigeria's ride-hailing market. Lagos, the country's commercial hub and largest ride-hailing market, introduced licensing requirements for e-hailing operators in 2020, and regulators' posture toward the remaining platforms will be worth watching.

Uber's exit from Nigeria follows an extended period of clashes with drivers over fares and commissions, during which drivers staged a protest in March 2026.

The decision also comes as Uber lays off more than 3,000 employees—around 10% of its global workforce—citing a restructuring affecting staff across its ride-sharing, delivery, and robotaxi divisions, according to a memo from CEO Dara Khosrowshahi seen by TechCabal.

"This wasn't a decision we made lightly because it will have a real impact on our teammates and friends who have worked hard for Uber. It's important to say that these changes are about how we are organised and what we are prioritising, not about anyone's contributions to Uber, which we will always value," Khosrowshahi said in the memo.

Nigeria is Uber's third African exit in roughly a year. In January, the company exited Tanzania after years of regulatory tensions and clashes over fares, commissions, and regulatory control, following a long-running dispute with the Land Transport Regulatory Authority (LATRA), which regulates ride-hailing more like traditional transport than an open marketplace. Uber left Côte d'Ivoire in September 2025 due to operational friction, ending six years of operations in the Francophone African country.

On September 1, the company also discontinued UberX, its low-budget service, in South Africa, underscoring a broader strategic pullback from markets where Uber sees weak economic value. For a company once committed to being "everywhere, for everyone," the retreat signals a shift toward prioritizing markets with clear paths to profitability over broad geographic reach.

Source: TechCabal